Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2018

Company's Available-for-Sale Investments within Fair Value Hierarchy

The following tables set forth the Company’s investments within the fair value hierarchy at September 30, 2018 and December 31, 2017:



($ millions)	Total		Level 1		Level 2
September 30, 2018
Available-for-sale fixed maturities:
U.S. treasury securities and obligations of U.S. government agencies	$	402.0	$	—	$	402.0
Obligations of states and political subdivisions	438.8		—		438.8
Corporate securities	525.9		—		525.9
U.S. government agencies mortgage-backed securities	774.9		—		774.9
Total available-for-sale fixed maturities	2,141.6		—		2,141.6
Equity securities:
Large-cap securities	95.6		95.6		—
Mutual and exchange traded funds	280.7		280.7		—
Total equity securities	376.3		376.3		—
Other invested assets	11.2		11.2		—
Total investments	$	2,529.1	$	387.5	$	2,141.6

($ millions)	Total		Level 1		Level 2
December 31, 2017
Fixed maturities:
U.S. treasury securities and obligations of U.S. government agencies	$	436.9	$	—	$	436.9
Obligations of states and political subdivisions	525.8		—		525.8
Corporate securities	529.7		—		529.7
U.S. government agencies mortgage-backed securities	700.4		—		700.4
Total fixed maturities	2,192.8		—		2,192.8
Equity securities:
Large-cap securities	96.8		96.8		—
Mutual and exchange traded funds	268.5		268.5		—
Total equity securities	365.3		365.3		—
Other invested assets	10.8		10.8		—
Total available-for-sale investments	$	2,568.9	$	376.1	$	2,192.8

Company Estimates Receivable from Affiliate using Market Quotations for U.S. Treasury Securities

Consequently this has been placed in Level 2 of the fair value hierarchy.



($ millions, except interest rates)	September 30, 2018						December 31, 2017
	Carrying value		Fair value		Interest rate		Carrying value		Fair value		Interest rate
Notes receivable from affiliate	$	70.0	$	72.5	7.00	%	$	70.0	$	72.6	7.00	%

Included in Notes Payable are Senior Notes and Subordinated Debentures

The carrying amount of the Subordinated Debentures approximates its fair value as the interest rate adjusts quarterly and has been disclosed in Level 3.



($ millions, except interest rates)	September 30, 2018						December 31, 2017
	Carrying value		Fair Value		Interest rate		Carrying value		Fair value		Interest rate
FHLB Loan due 2021: issued $21.5, September 2016 with fixed interest	$	21.5	$	20.6	1.73	%	$	21.5	$	20.9	1.73	%
FHLB Loan due 2033: issued $85.0, July 2013 with fixed interest	—		—		—	%	85.4		85.7		5.03	%
FHLB Loan due 2033: issued $85.0, May 2018 with fixed interest	85.3		86.4		3.96	%	—		—		—	%
Affiliate Subordinated Debentures due 2033: issued $15.5, May 2003 with variable interest	15.2		15.2		6.52	%	15.2		15.2		5.68	%
Total notes payable	$	122.0	$	122.2			$	122.1	$	121.8